⚖️ Ethics and Professional Practice (Common Law)

1. Under the Limitations Act, 2002 (Ontario), a proceeding in respect of a claim must generally be commenced within which basic limitation period?

1. One year after the day on which the loss first occurred
2. Two years after the day on which the claim was discovered
3. Six years after the day on which the contract was first signed
4. Fifteen years after the day on which the act or omission occurred

Section 4 of the Ontario Limitations Act provides that, unless the Act provides otherwise, no proceeding may be commenced “after the second anniversary of the day on which the claim was discovered”. The fifteen-year figure is the separate ultimate limit in section 15, which runs from the act or omission and not from discovery. Neither a one-year nor a six-year period is the basic period set by the Act.

2. In Ontario, Marcus bought a life insurance policy in 2008 on the advice of an agent who made a serious error on the application that year. Marcus first learned of the error in June 2025, when a claim was refused. The agent concealed nothing, and Marcus was never a minor or incapable of acting. Is Marcus's claim against the agent barred by the Limitations Act, 2002?

1. Yes, because more than 15 years passed after the act or omission took place
2. Yes, because the basic two-year period began on the day the policy was issued
3. No, because the ultimate period starts to run on the day of discovery
4. No, because an ultimate period does not apply to a claim about advice given

Section 15(2) of the Ontario Limitations Act bars a proceeding “after the 15th anniversary of the day on which the act or omission on which the claim is based took place”, even if the basic period has not expired. The basic two-year period in section 4 of that Act runs from discovery, not from issue of the policy, so Marcus was inside it but is stopped by the ultimate period. None of the exceptions in section 15(4), such as wilful concealment, minority or incapacity, applies on these facts.

3. In Ontario, Jasmine is 16 years old and works part time. She applies for a life insurance policy on her own life and pays the premiums from her earnings. Her father says the contract cannot be enforced because she is a minor. Is he correct?

1. Yes, because no minor can make an enforceable contract of insurance
2. Yes, unless one of her parents also signs the application as guarantor
3. No, because at age 16 she has the capacity of a person aged 18
4. No, provided that she names one of her parents as the beneficiary

Section 202 of the Insurance Act (Ontario) provides that “a minor who has attained the age of sixteen years has the capacity of a person of the age of eighteen years” to make an enforceable contract of life insurance. A parent's signature as guarantor is not required, and naming a parent as beneficiary is not a condition of the contract. The general rule that a minor cannot contract is therefore displaced for this type of contract.

4. In Ontario, Dev's father names Dev, who is 17, as beneficiary of a life insurance policy on the father's life. Dev claims that, because he is over 16, he has the capacity of an 18-year-old in respect of his rights as a beneficiary. Is Dev correct?

1. Yes, because the 16-year rule covers every right that a minor holds
2. No, because the rule excludes a minor's own rights as a beneficiary
3. No, because a minor cannot be named as the beneficiary of a policy
4. Yes, because a named beneficiary is treated as an adult for this purpose

Section 202 of the Insurance Act (Ontario) opens with “Except in respect of his or her rights as beneficiary”, so the adult-capacity rule for a minor of 16 does not extend to the minor's rights as a beneficiary. It does not say that every right of a minor is covered, and it does not treat a beneficiary as an adult. A minor may be named as a beneficiary, so the rule does not prevent the designation.

5. In the law of agency, which of the following best defines an agent?

1. A person who promises to pay the debt of another person if that person defaults
2. A person authorized to act for another person in dealings with third parties
3. A person appointed by a court to administer the property of a deceased person
4. A person who holds property for the benefit of someone else under a trust

An agent is a person who has authority from a principal to act for the principal and to affect the principal's legal position in dealings with third parties. The other descriptions fit a guarantor, an estate trustee and a trustee, whose roles do not involve acting for a principal in dealings with third parties. In life insurance, the Act also gives the insurer's agent a specific role: under section 180(2) of the Insurance Act (Ontario), a policy issued on the terms applied for and delivered to an agent of the insurer for unconditional delivery is deemed to have been delivered to the insured.

6. In Ontario, an insurance agent failed to submit a rider that Nina had requested. The omission took place on May 5, 2024. Nina says she first learned of it on January 12, 2026, and the court accepts evidence that neither she nor a reasonable person in her circumstances could have known of the matters in section 5 of the Limitations Act, 2002 before that day. By what date must she start a proceeding under the basic limitation period?

1. May 5, 2026, the second anniversary of the omission
2. January 12, 2027, the first anniversary of her discovery
3. May 5, 2039, the 15th anniversary of the omission
4. January 12, 2028, the second anniversary of her discovery

Under section 5(2) of the Ontario Limitations Act, a person with a claim is presumed to have known of the matters on the day of the omission “unless the contrary is proved”, and here the evidence rebuts that presumption, so the claim was discovered on January 12, 2026. Section 4 of that Act then bars a proceeding “after the second anniversary of the day on which the claim was discovered”, which is January 12, 2028. May 5, 2026 reflects the unrebutted presumption, a one-year period does not exist in section 4, and May 5, 2039 is the separate ultimate limit.

7. Which of the following are required for a valid contract at common law? 1. An offer that is accepted by the other party 2. Consideration given by each party 3. A written document witnessed by two people 4. Parties who have the capacity to contract

1. 1, 2 and 3
2. 1, 2 and 4
3. 1, 3 and 4
4. 2, 3 and 4

A valid contract requires an offer and its acceptance, consideration, capacity of the parties, a lawful object and consent, so propositions 1, 2 and 4 are required. A written document witnessed by two people is not a general requirement, since many contracts are valid without writing, so each other combination, which includes proposition 3 and leaves out one of the required elements, is wrong. Capacity is also why section 202 of the Insurance Act (Ontario) matters, since it gives a minor who has attained the age of sixteen years the capacity of a person aged eighteen to make an enforceable life insurance contract.

8. Which of the following does a plaintiff NOT have to prove in an action for negligence?

1. That the defendant intended to cause the plaintiff's loss
2. That the defendant's conduct fell below the standard of care
3. That the defendant owed the plaintiff a duty of care
4. That the breach of the standard caused damage to the plaintiff

Negligence requires a duty of care, a breach of the standard of care, damage and a causal link between the breach and the damage. Intent to cause harm is not an element of negligence, which concerns carelessness rather than deliberate wrongdoing. The other three statements are each elements that the plaintiff must establish. The same causal link appears in section 5(1) of the Ontario Limitations Act, which lists knowledge that the loss was caused or contributed to by an act or omission of the person against whom the claim is made among the matters that determine when a claim is discovered.

9. Under the Canadian Constitution, which body has primary authority to make laws on insurance contracts and the licensing of insurance agents within a province?

1. The federal Parliament, through a single national insurance statute
2. The Canadian Life and Health Insurance Association, through its guidelines
3. The courts, through the common law alone without any insurance statute
4. Each provincial legislature, through its own insurance statute

Insurance contracts fall within property and civil rights, which is a provincial matter, so each province has its own insurance statute, such as the Insurance Act (Ontario). The Canadian Life and Health Insurance Association issues industry guidelines but does not make law. The courts apply the common law alongside the statutes and do not replace them. The provincial rules do differ: a minor who has reached 16 has the capacity of a person aged 18 under section 202 of the Insurance Act (Ontario), of a person aged 19 under section 72 of the Insurance Act (British Columbia), and of an adult under section 673 of the Insurance Act (Alberta).

10. Under the Limitations Act, 2002 (Ontario), which of the following circumstances stops the 15-year ultimate limitation period from running?

1. The person with the claim is living outside Ontario during that period
2. The person being sued wilfully conceals that the loss has occurred
3. The parties are discussing a settlement of the claim between themselves
4. The person with the claim is a minor who has a litigation guardian

Section 15(4) of the Ontario Limitations Act provides that the ultimate period does not run while the other party “wilfully conceals from the person with the claim the fact that injury, loss or damage has occurred”. Minority only suspends the period when the minor is not represented by a litigation guardian. Residence outside Ontario is not a ground, and talks between the parties alone do not stop the period: section 11 of that Act deals with an agreement to have an independent third party resolve the claim or assist in resolving it. Under section 15(5), the claimant bears the burden of proving that an exception applies.

11. Ingrid bought a term life policy from Maple Ridge Financial Services Ltd. and cancelled it three years ago. She has had no other dealings with the firm since. Today one of its agents emails her an advertisement for a critical illness product. Ingrid has never given express consent to receive messages from the firm. Does the firm have implied consent under CASL?

1. No, because the two-year period that applies to her purchase had already ended before the message was sent
2. Yes, because an agent licensed under provincial insurance legislation is exempt from the consent rule
3. Yes, because a purchase supports implied consent until the firm receives an unsubscribe request from her
4. No, because implied consent cannot cover a message about a product other than the one she purchased

Subsection 10(9) of CASL allows implied consent where there is an existing business relationship, and paragraph 10(10)(a) counts a purchase only if it was made “within the two-year period immediately before the day on which the message was sent”. Even for an ongoing relationship, paragraph 10(14)(a) only starts that period on the day the relationship terminates, so a policy cancelled three years ago no longer supports implied consent. Implied consent from a purchase is limited in time rather than lasting until an unsubscribe request, section 6 applies to licensed insurance agents like anyone else, and the Act does not limit implied consent to messages about the product bought.

12. Amira applies for a life insurance policy through an agent. The insurer's application form states that coverage will not be issued unless she also agrees to let the insurer give her contact details to an unrelated travel company for advertising. How does PIPEDA treat this condition?

1. It is proper, because signing an application form gives consent to the uses that the insurer chooses to list on it
2. It is improper, because consent cannot be required beyond what is needed for the explicitly specified, legitimate purposes
3. It is proper, because an insurer is free to set whatever consent conditions it wishes before issuing a contract
4. It is improper, because personal information cannot be given to another organization without a court order

Clause 4.3.3 of PIPEDA states that an organization shall not, as a condition of supplying a product or service, require consent to the collection, use or disclosure of information “beyond that required to fulfil the explicitly specified, and legitimate purposes”. Advertising by a travel company is not needed to issue life insurance. Signing a form does not cover uses the organization adds, no rule gives insurers freedom to impose such conditions, and a court order is not the test for disclosure.

13. Owen, a life insurance agent, meets a prospect who offers to pay a $40,000 single premium in cash. After Owen explains that he must record information about the client, the prospect becomes evasive about the source of the money and leaves without handing over any cash or completing the application. Owen concludes that he has reasonable grounds to suspect the funds are linked to a money laundering offence. What is Owen's position?

1. No report is needed, because the policy was not issued and no money changed hands between the two parties
2. A report is needed if the prospect returns and the transaction is eventually completed with the cash
3. A report is needed if the prospect is also identified by the insurer as a politically exposed person
4. A report is required, because a transaction that is attempted is covered when grounds to suspect exist

Section 7 of the PCMLTFA requires every person or entity referred to in section 5 to report every financial transaction that “occurs or that is attempted” when there are reasonable grounds to suspect a link to a money laundering, terrorist activity financing or sanctions evasion offence. Section 17 of the PCMLTFR treats a life insurance agent as engaged in a business for the purposes of paragraph 5(i). The report is therefore required even though the transaction was not completed, and no politically exposed person status or completion is a condition.

14. Under section 9.6 of the PCMLTFA, what must every person or entity covered by Part 1 of the Act do about compliance?

1. Establish and implement a compliance program that is reasonably designed, risk-based and effective
2. Rely on the compliance program of the insurer that appointed them and adopt no program of their own
3. File a signed compliance certificate with the provincial insurance regulator at the end of each year
4. Obtain the written approval of FINTRAC before accepting a new client for any life insurance product

Subsection 9.6(1) of the PCMLTFA requires every person or entity referred to in section 5 to establish and implement a compliance program, and subsection 9.6(1.1) says the program must be reasonably designed, risk-based and effective. Subsection 133(2) of the PCMLTFR does not shift this responsibility to the insurer when a life insurance broker or agent acts on its behalf, so an agent cannot simply rely on the insurer's program. The Act asks for no annual certificate to the provincial regulator and no FINTRAC approval before accepting clients.

15. Under PIPEDA, which statement describes an individual's right to withdraw consent to the handling of their personal information?

1. Consent becomes permanent once the individual has signed the application form for the product and paid
2. Consent may be withdrawn only by sending a written request to the office of the Privacy Commissioner of Canada
3. Consent may be withdrawn at any time, subject to legal or contractual restrictions and reasonable notice
4. Consent may be withdrawn only if the organization agrees that the individual's reasons are valid and sufficient

Clause 4.3.8 of PIPEDA states that “An individual may withdraw consent at any time, subject to legal or contractual restrictions and reasonable notice” and that the organization must explain the implications of withdrawal. Signing a form does not make consent permanent, the request goes to the organization rather than the Commissioner, and the organization's agreement with the reasons is not a condition.

16. Under CASL, which situation creates an existing business relationship that supports implied consent to send a commercial electronic message?

1. The recipient's email address was found on a marketing list that the sender had purchased from another firm
2. The recipient visited the sender's website once and read a published article nine months before the message was sent
3. The recipient's life insurance policy with the sender was cancelled three years before the message was sent
4. The recipient asked the sender about its life insurance products five months before the message was sent to them

Paragraph 10(10)(e) of CASL counts an inquiry or application made “within the six-month period immediately before the day on which the message was sent”, so an inquiry five months earlier qualifies. A purchase counts only within the two-year period in paragraph 10(10)(a), which for an ongoing relationship starts when the relationship terminates under paragraph 10(14)(a), so a policy cancelled three years earlier no longer qualifies. Merely reading a website article or appearing on a purchased list is not a purchase, inquiry or contract listed in subsection 10(10).

17. Which public program provides benefits to a worker who is injured on the job without requiring proof that the employer was at fault?

1. Employment Insurance regular benefits
2. Canada Pension Plan retirement pension
3. Provincial workers' compensation plan
4. Guaranteed Income Supplement payments

Workers' compensation is the provincial no-fault system that pays benefits to workers injured at work, whoever was to blame; paragraph 56(1)(v) of the Income Tax Act refers to “compensation received under an employees’ or workers’ compensation law of Canada or a province”. Regular Employment Insurance benefits replace income after a job loss, the Canada Pension Plan retirement pension is paid on retirement, and the Guaranteed Income Supplement tops up Old Age Security for low-income seniors.

18. Which of the following is NOT an object of the PCMLTFA?

1. Setting the licensing requirements and conduct rules for life insurance agents in each province of Canada
2. Requiring the reporting of suspicious financial transactions and cross-border movements of currency
3. Establishing record keeping and client identification requirements for financial services providers and others
4. Giving law enforcement the information needed to deprive criminals of the proceeds of their activities

Section 3 of the PCMLTFA lists its objects: record keeping and client identification requirements (subparagraph (a)(i)), reporting of suspicious transactions and cross-border movements (subparagraph (a)(ii)) and giving law enforcement the information to deprive criminals of the proceeds of their activities (paragraph (b)). The licensing of insurance agents belongs to provincial insurance legislation, not to the PCMLTFA.

19. Under subsection 7(1) of PIPEDA, in which of the following situations may an organization collect personal information without the individual's knowledge or consent? 1. The collection is clearly in the individual's interests and consent cannot be obtained in a timely way 2. The information is in a witness statement and the collection is necessary to assess, process or settle an insurance claim 3. The information is publicly available, whatever its type and whether or not the regulations specify it 4. The collection is made for the purpose of a disclosure that is required by law

1. 3 and 4
2. 1, 2 and 4
3. 1, 3 and 4
4. 2 and 3

Paragraph 7(1)(a) allows collection that is clearly in the individual's interests when consent cannot be obtained in a timely way, paragraph 7(1)(b.1) allows it for a witness statement needed to settle an insurance claim, and subparagraph 7(1)(e)(ii) allows it for a disclosure required by law (propositions 1, 2 and 4). Proposition 3 is false: under paragraph 7(1)(d) publicly available information qualifies only if it is “specified by the regulations”.

20. In Ontario, Amara completes an application for a life insurance policy and gives the agent her first premium cheque on June 1. On June 20, before the policy is delivered, she is diagnosed with a serious heart condition. The policy, issued as applied for, is delivered to her on June 28, and she does not tell the insurer about the diagnosis. Assuming the contract contains no provision to the contrary, what is its status?

1. It has not taken effect, because her insurability changed before delivery
2. It took effect on June 1, the day the first premium was paid
3. It took effect on June 28, the day the policy was delivered to her
4. It is in force, and the insurer could contest it for fraud alone

Under section 180(1) of the Insurance Act (Ontario), a contract does not take effect unless the policy is delivered, the initial premium is paid and “no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered”. Delivery and payment alone are not enough, so the contract did not take effect on June 1 or June 28. The rule in section 184(2) that limits a challenge to fraud applies only after a contract has been in effect for two years, and this contract never took effect.

21. In Ontario, Rashid designated his daughter Leila, now 24, as the irrevocable beneficiary of his life insurance policy. Rashid now wants to surrender the policy for its cash value, and Leila has not consented. What is generally required before he may surrender it?

1. A court order, since the designation is irrevocable and cannot be changed
2. Leila's consent, since she is an irrevocable beneficiary aged 18 or over
3. Written notice to Leila, since she has no power to veto the surrender
4. Nothing, since the policyholder controls the cash value of the policy

Section 197(1) of the Insurance Act (Ontario) lets the insured surrender or otherwise deal with the contract where the beneficiary is designated irrevocably only if that beneficiary has attained the age of eighteen years and consents. A court order is available only under section 197(4) when the irrevocable beneficiary is legally incapable of consenting, and Leila is not. Notice alone is not consent, and the insured does not control the policy in spite of an irrevocable beneficiary.

22. In Ontario, Marta's individual life insurance policy has a monthly premium due on April 1, and she does not pay it. The policy does not specify a longer period for paying an overdue premium. Marta dies on April 20 while the premium is still unpaid. What is the result?

1. The insurer pays the claim and may deduct the unpaid premium
2. The insurer refunds the premiums paid and denies the claim for death
3. The insurer pays the claim in full and cannot deduct the unpaid premium
4. The contract lapsed on April 1, so no insurance money is payable

Under section 182(2) of the Insurance Act (Ontario), an overdue premium other than the initial premium may be paid within 30 days, or any longer period set by the contract. Because Marta died within that period, section 182(3) provides that “the contract shall be deemed to be in effect as if the premium had been paid at the time it was due”, and for an individual contract the premium may be deducted from the insurance money. The contract therefore had not lapsed on April 1.

23. In Ontario, Naveen's individual life policy lapsed at the end of its period of grace on March 1, 2025. The cash surrender value has not been paid, and no paid-up or extended insurance option was exercised. On October 15, 2026, he asks the insurer to reinstate the policy. What must Naveen do for the insurer to be required to reinstate it?

1. Apply, pay all overdue premiums and indebtedness, and show good health and insurability
2. Apply and pay the overdue premium within 30 days after the end of the grace period
3. Pay the overdue premium alone, since reinstatement within two years is automatic
4. Apply within one year of the lapse and pay a fixed reinstatement fee

Section 189(2) of the Insurance Act (Ontario) requires the insurer to reinstate if, within two years of the lapse, the insured applies, pays all overdue premiums and other indebtedness with interest not exceeding the prejudgment rate, and “produces evidence satisfactory to the insurer of the good health and insurability of the person whose life was insured”. The simpler 30-day route in section 189(1.1) ended on March 31, 2025, so paying the overdue premium alone is no longer enough and reinstatement is not automatic. A one-year deadline and a fixed fee are not found in the Act.

24. In Ontario, Peter gives the insurer's authorized agent a cheque for the initial premium of a life insurance policy. The policy is delivered to him, and his insurability has not changed. Two days later the bank returns the cheque as not honoured. Peter dies the next week without having replaced it. Assuming the contract contains no provision to the contrary, what is the result?

1. The contract is in force for 30 days, since a grace period applies
2. The contract took effect at delivery, since the agent accepted the cheque
3. The contract took effect, but the insurer may deduct the premium from the claim
4. The contract never took effect, since the premium is deemed unpaid

Section 181(1) of the Insurance Act (Ontario) provides that when a cheque is not honoured, “the premium or part thereof shall be deemed not to have been paid”. Payment of the initial premium is a condition for the contract to take effect under section 180(1), so it never took effect. The period of grace in section 182(2) applies to a premium “other than the initial premium”, and the deduction in section 182(3) applies only during that period.

25. In Ontario, Gloria applies for a life insurance policy on the life of her adult nephew, Carlos. Gloria does not depend on Carlos for support or education, she has no pecuniary interest in the duration of his life, and he has not consented in writing. What is the status of the contract at the time it would otherwise take effect?

1. Void, because Gloria has no insurable interest and there is no written consent
2. Valid, because a nephew is treated as a close relative of the applicant
3. Valid, because insurable interest is tested at the time a claim is made
4. Voidable by the insurer until it has been in effect for two years

Under section 178(1) of the Insurance Act (Ontario), a contract is void if, when it would otherwise take effect, the insured has no insurable interest. Section 179 lists a child, grandchild, spouse, a person on whom the applicant depends or from whom support is received, an employee, and a person in whose life there is a pecuniary interest, and a nephew with none of those links is not on the list. The exceptions in section 178(2) for group insurance and written consent do not apply, and the test is made at the time the contract takes effect, not at claim time.

26. In Ontario, Elena's individual life policy took effect on January 10, 2023. It reduces the amount payable if the life insured dies by suicide within two years of the effective date. The policy lapsed in March 2024 and was reinstated on September 1, 2024. Elena dies by suicide on February 15, 2026. How does the clause apply?

1. The reduction does not apply, because the period ended on January 10, 2025
2. The reduction does not apply, because suicide clauses are not enforceable in Ontario
3. The reduction applies, because the period restarted on September 1, 2024
4. The reduction applies, because the period restarted when the policy lapsed

Section 188(2) of the Insurance Act (Ontario) provides that after a lapse and reinstatement “the period of time commences to run from the date of the latest reinstatement”. The two-year period therefore ran from September 1, 2024 and had not ended on February 15, 2026. The suicide clause is a contract term that the Act recognizes: section 188(2) itself deals with contracts that are void or pay a reduced amount on suicide within a set period, so such a clause is permitted in Ontario. The lapse in March 2024 does not restart the period; only the reinstatement does, and the original period ending on January 10, 2025 no longer applies.

27. In Ontario, in the absence of fraud, how long must an individual life insurance contract have been in effect before a failure to disclose or a misrepresentation no longer makes it voidable?

1. Six months during the lifetime of the life insured
2. Two years during the lifetime of the life insured
3. One year during the lifetime of the life insured
4. Five years during the lifetime of the life insured

Section 184(2) of the Insurance Act (Ontario) provides that where a contract “has been in effect for two years during the lifetime of the person whose life is insured”, a failure to disclose or a misrepresentation does not, in the absence of fraud, render the contract voidable. This is the incontestability rule. Six months and one year are shorter than the period set by the Act, and five years is the different limit in section 186(3) for a contract whose insurable age limit was exceeded.

28. In Ontario, the age of the life insured under an individual life policy was misstated to the insurer, but the correct age is within the insurable age limit of the contract. How is the insurance money determined?

1. It is paid in full, since a misstatement of age cannot affect the contract
2. It is adjusted to what the same premium would have bought at the correct age
3. It is limited to a refund of the premiums paid, together with interest
4. It is cancelled, since the misstatement makes the contract void from the start

Section 186(2) of the Insurance Act (Ontario) provides that the insurance money “shall be increased or decreased to the amount that would have been provided for the same premium at the correct age”. The contract is not void, and the insurer does not simply refund premiums. Section 184 on non-disclosure expressly excludes a misstatement of age, and voidability under section 186(3) arises only when the correct age exceeds a limit in the contract.

29. In Ontario, an individual life contract lapses at the end of a period of grace because the premium was not paid. Under the statutory rule, the contract may be reinstated by payment of the overdue premium alone within what further period, and on what condition?

1. 15 days after the grace period, if the insurer consents in writing
2. Two years after the lapse, if the life insured gives evidence of insurability
3. 60 days after the grace period, if the life insured is in good health
4. 30 days after the grace period, if the life insured is alive when payment is made

Section 189(1.1) of the Insurance Act (Ontario) allows reinstatement by payment of the overdue premium within a further period of 30 days after the end of the grace period, “but only if the person whose life was insured under the contract is alive at the time payment is made”. No evidence of health or insurer consent is needed for this route. The two-year route in section 189(2) is the one that requires evidence of good health and insurability.

30. In Ontario, an insured purports to designate a beneficiary irrevocably in her will. What is the legal effect of that designation?

1. It is irrevocable, because a will is a declaration made by the insured
2. It has the same effect as if she had not purported to make it irrevocable
3. It is irrevocable, if the beneficiary is at least 18 years old
4. It is void, so the insurance money is paid to the insured's estate

Section 191(1) of the Insurance Act (Ontario) allows an irrevocable designation only in the contract or by a declaration “other than a declaration that is part of a will”, filed with the insurer. Under section 191(2), a designation that purports to be irrevocable in a will has “the same effect as if the insured had not purported to make it irrevocable”, so it remains an ordinary revocable designation. It is not void, and the beneficiary's age is not what decides the matter.

31. Under the Insurance Act (Ontario), how is an insurer's undertaking to provide an annuity treated for the purposes of the life insurance Part?

1. As accident and sickness insurance, because payments depend on health
2. As an investment contract that stays outside the life insurance Part
3. As life insurance, whether the term is certain or depends on a life
4. As life insurance for a life annuity, but not for an annuity certain

Section 171(2) of the Insurance Act (Ontario) provides that an undertaking to provide an annuity “shall be deemed to be and always to have been life insurance”, whether the term is certain, depends wholly or partly on a human life, or depends on an event unrelated to a human life. The deeming rule therefore covers an annuity certain as well as a life annuity. An annuity is neither accident and sickness insurance nor outside the Part.

32. Under Part V of the Insurance Act (Ontario), which of the following best describes a beneficiary?

1. The person who makes the contract of life insurance with the insurer and pays the premiums
2. The person whose life is insured and whose death triggers payment of the insurance money
3. A person, other than the insured or their personal representative, to whom the money is payable
4. A trustee whom the insured appoints by declaration to receive the insurance money for another person

Section 171(1) of the Insurance Act (Ontario) defines a beneficiary as a person, other than the insured or the insured's personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration. The person who makes the contract is the insured, and the person whose life is covered is the life insured. A trustee for a beneficiary is a separate role under section 193.

33. Under Part V of the Insurance Act (Ontario), which of the following best describes creditor's group insurance?

1. Insurance effected by a creditor on the lives of a number of its debtors under one contract
2. Insurance covering the insured and several relatives under a single contract with an insurer
3. Insurance covering loss from specific hazards for a limited period of up to 30 days
4. Insurance bought by an employer to cover the lives of its employees under one contract

Section 171(1) of the Insurance Act (Ontario) defines creditor's group insurance as “insurance effected by a creditor whereby” the lives of a number of the creditor's debtors are insured severally under a single contract. Employer-sponsored cover is ordinary group insurance, cover for relatives under one contract is family insurance, and cover for specific hazards for up to 30 days is blanket insurance.

34. Which of the following is NOT information that an insurer must include in an individual life insurance policy under section 175 of the Insurance Act (Ontario)?

1. The amount of the premium, or the method of determining that amount
2. The conditions upon which the contract may be reinstated if it lapses
3. The amount of commission payable to the agent who sold the contract
4. Whether the contract provides for participation in a distribution of surplus

Section 175(2) of the Insurance Act (Ontario) requires the policy to state, among other things, the amount of the premium or the method of determining it, whether the contract participates in a distribution of surplus or profits, and the conditions upon which it may be reinstated if it lapses. The commission paid to the selling agent is not among the items that section 175(2) requires the policy to contain.

35. Under the statutory conditions for accident and sickness insurance in Ontario, an insurer may terminate an individual contract by written notice. Which of the following is NOT a permitted way to give that notice?

1. Ordinary unregistered mail to the last known address of the insured
2. Registered mail to the insured's latest address on the insurer's records
3. Personal delivery of the written notice directly to the insured
4. Electronic delivery, if the insured consents to delivery that way

Statutory condition 6(2) in section 300 of the Insurance Act (Ontario) allows notice by personal delivery, by prepaid courier with a record of delivery, by “registered mail to the latest address of the insured on the records of the insurer”, or by electronic means if the insured consents. Ordinary mail that is not registered is not on that list.